Oil prices rose more than $3 a barrel on Monday, extending last week’s gain, as potential OPEC+ output cuts and conflict in Libya helped to offset a strong US dollar and a dire outlook for US growth.
Saudi Arabia, top producer in the Organisation of the Petroleum Exporting Countries (OPEC), last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West.
OPEC+, comprising OPEC, Russia and allied producers, meets to set policy on Sept 5.
Brent crude was up $3.16, or 3.1%, at $104.15 a barrel by 1633 GMT, having risen by 4.4% last week. US West Texas Intermediate (WTI) crude gained $3.16, or 3.4%, to $96.22 after rallying 2.5% last week.
“Oil prices are inching higher on hopes of a production cut from OPEC and its allies to restore market balance in response to the revival of Iran’s nuclear deal,” said Sugandha Sachdeva, Vice President of Commodity Research at Religare Broking.
Published in The Express Tribune, August 30th, 2022.